Norway banks lukewarm on crown-based money market

OSLO, Jan 29 (Reuters) – Norwegian bankers, who have been mulling ditching a dollar-based money market for a crown-based one, say it would make the financial system less vulnerable to contagion from outside but may be prone to liquidity problems.

Norwegian banks obtain their financing from abroad, mainly from the London-based U.S. dollar market, which has injected dollar-related liquidity problems into the Norwegian system as banks must first buy dollars then swap them into crowns.

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